Correlation Between Loctek Ergonomic and Xiamen East
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Xiamen East Asia, you can compare the effects of market volatilities on Loctek Ergonomic and Xiamen East and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Loctek Ergonomic with a short position of Xiamen East. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Xiamen East.
Diversification Opportunities for Loctek Ergonomic and Xiamen East
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Xiamen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Xiamen East Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen East Asia and Loctek Ergonomic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Loctek Ergonomic Technology are associated (or correlated) with Xiamen East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen East Asia has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Xiamen East go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Xiamen East
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.0 times more return on investment than Xiamen East. However, Loctek Ergonomic is 1.0 times more volatile than Xiamen East Asia. It trades about 0.04 of its potential returns per unit of risk. Xiamen East Asia is currently generating about 0.02 per unit of risk. If you would invest 1,436 in Loctek Ergonomic Technology on August 24, 2024 and sell it today you would earn a total of 233.00 from holding Loctek Ergonomic Technology or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Xiamen East Asia
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Xiamen East Asia |
Loctek Ergonomic and Xiamen East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Xiamen East
The main advantage of trading using opposite Loctek Ergonomic and Xiamen East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Xiamen East can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xiamen East will offset losses from the drop in Xiamen East's long position.| Loctek Ergonomic vs. Success Electronics | Loctek Ergonomic vs. Puyang Huicheng Electronic | Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Hangzhou Weiguang Electronic |
| Xiamen East vs. Chengtun Mining Group | Xiamen East vs. Anhui Deli Household | Xiamen East vs. Sichuan Yahua Industrial | Xiamen East vs. Offshore Oil Engineering |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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